Noncompetes-50 State Survey Chart 20190427

1 Employee Noncompetes A State by State Survey Enforceable Continued Against Employment Reformation Employees Protectable / Legitimate is Sufficient Blue Pencil Terminated State Permitted Interests Standards Exemptions Consideration Red Pencil w/o Cause Trade secrets; confidential information; commercial relationships or contacts with specific prospective or existing customers, patients, vendors, or clients; customer, patient, vendor, or Yes. client goodwill; specialized and Must be in writing, signed by all parties, Ala. Code unique training involving substantial and be supported by adequate 8-1-190-197 business expenditure specifically consideration. Must preserve a ( 8-1-1 directed to a particular agent, protectable interest. A two-year repealed servant, or employee (if identified in restriction is presumptively reasonable. Yes, likely effective writing as consideration for the Employee has burden of proving undue Yes (pre- (pre- Alabama 1/1/2016 ) restriction).))

2 Hardship, if raised as a defense. Professionals amendment) Reformation amendment). Trade secrets; intellectual property; Factors: limitations in time and space;. customer lists; goodwill with whether employee was sole contact customers; knowledge of his or her with customer; employee's possession business practices; methods; profit of trade secrets or confidential margins; costs; other confidential information; whether restriction information (that is confidential, eliminates unfair or ordinary proprietary, and increases in value competition; whether the covenant from not being known by a stifles employee's inherent skill and competitor; training and education of experience; proportionality of benefit to the employer's employees; other employer and detriment to employee;. valuable employer data that the whether employee's sole means of empoyer has provided to an support is barred; whether employee's employee that an employer would talent was developed during reasonably seek to protect or employment; whether forbidden safeguard from a competitor in the employment is incidental to the main Alaska Yes interest of fairness.

3 Employment. - Undecided Reformation Undecided No broader than necessary to protect the employer's legitimate business Trade Secrets; Confidential interest; not unreasonably restrictive;. Information; Customer not contrary to public policy; ancillary to Broadcasters;. Arizona Yes Relationships another contract. maybe physicians Yes Blue Pencil Undecided Russell Beck Beck Reed Riden LLP 1 of 18. 155 Federal Street, Suite 1302 4/27/19. Boston, MA 02110 2010-2019 Beck Reed Riden LLP. 617-500-8670 All Rights Reserved Not Intended As Legal Advice Employee Noncompetes A State by State Survey Enforceable Continued Against Employment Reformation Employees Protectable / Legitimate is Sufficient Blue Pencil Terminated State Permitted Interests Standards Exemptions Consideration Red Pencil w/o Cause Trade secrets; intellectual property; customer lists; Limited with respect to time and scope goodwill with customers; in a manner that is not greater than knowledge of business necessary to defend the protectable practices; methods; profit business interest of the employer.

4 The margins; costs; other lack of a geographic limit does not confidential information (that render the agreement unenforceable, is confidential, proprietary, provided that the time and scope limits and increases in value from appropriately limit the restriction. not being known by a Factors to consider include the nature of competitor); training and the employer's business interest; the education; other valuable geographic scope, including whether a employer data (if provided to geographic limit is feasible; whether the Yes. employee and an employer restriction is limited to specific group of Various Ark. Code would reasonably seek to customers or others; and the nature of professionals 4-70-207 protect or safeguard from a the employer's business. A two-year (medical, (effictive competitor in the interest of restriction is presumptively reasonable veterinary, social Reformation Arkansas 8/6/2015 ) fairness). unless clearly demonstrated otherwise. workers, others) Yes (mandatory) Undecided No, except maybe as to trade secrets.

5 Cal. Business &. Professions California Code 16600 Trade secrets Uncertain status as to trade secrets. - - - - Must fall within statutory exception (executive or management employees Yes. and professional staff or to protect Colo. Rev. Trade secrets; recovery of trade secrets or recover cost of Physicians Stat. training expenses for short- training); be reasonable; and be (damages not Colorado 8-2-113 term employees. narrowly-tailored. barred) Yes Reformation Undecided Russell Beck Beck Reed Riden LLP 2 of 18. 155 Federal Street, Suite 1302 4/27/19. Boston, MA 02110 2010-2019 Beck Reed Riden LLP. 617-500-8670 All Rights Reserved Not Intended As Legal Advice Employee Noncompetes A State by State Survey Enforceable Continued Against Employment Reformation Employees Protectable / Legitimate is Sufficient Blue Pencil Terminated State Permitted Interests Standards Exemptions Consideration Red Pencil w/o Cause Factors: time; geographic reach;. fairness of protection afforded to Broadcasters.

6 Trade secrets; confidential employer; extent of restraint on security guards;. information; customer employee; extent of interference with limited as to Connecticut Yes relationships. public interest. physicians Yes, likely Blue Pencil Yes Trade secrets; confidential Reasonable in time and geographic information; customer reach; protects legitimate economic Delware Yes relationships. interests; survives balance of equities. Physicians Yes Reformation Yes Reasonable in time and geographic area; necessary to protect legitimate Yes (if business interests; promisee's need employment Trade secrets; confidential outweighs promisor's hardship. [Follows continued for knowledge; expert training; Restatement (Second) of Contracts, sufficient Reformation DC Yes fruits of employment secs. 186-88.] Broadcasters duration) or Blue Pencil Undecided Trade secrets; confidential business information;. substantial customer Yes. relationships and goodwill; Legitimate business interest; reasonably Fla.

7 Stat. Ann. extraordinary or specialized necessary to protect legitimate business Reformation Florida training interest. [Rebuttal presumptions exist.] Mediators Yes (mandatory) Undecided Russell Beck Beck Reed Riden LLP 3 of 18. 155 Federal Street, Suite 1302 4/27/19. Boston, MA 02110 2010-2019 Beck Reed Riden LLP. 617-500-8670 All Rights Reserved Not Intended As Legal Advice Employee Noncompetes A State by State Survey Enforceable Continued Against Employment Reformation Employees Protectable / Legitimate is Sufficient Blue Pencil Terminated State Permitted Interests Standards Exemptions Consideration Red Pencil w/o Cause Yes. Ga. Const., Art. III, Sec. VI, Par. V(c), as amended;. OCGA. 13-8-53. [NOTE : Pre- amendment Proprietary confidential law was more information and relationships; Not overbroad in time, space, and restrictive and goodwill; economic scope; interest of individuals in gaining Blue Pencil applies to pre- advantage; time and and pursuing a livelihood; commercial (according to Yes, but it's a amendment monetary investment in concerns in protecting legitimate the Northern factor to be Georgia agreements] employee's skill and training.)

8 Business interests; public policy. - Yes District) considered. Employees in a technology Yes. business Haw. Rev. Trade secrets; confidential [effective as of Hawaii Stat. 480-4 information. Reasonable in time, space, scope. 1/1/2015] Yes, likely Reformation Undecided Russell Beck Beck Reed Riden LLP 4 of 18. 155 Federal Street, Suite 1302 4/27/19. Boston, MA 02110 2010-2019 Beck Reed Riden LLP. 617-500-8670 All Rights Reserved Not Intended As Legal Advice Employee Noncompetes A State by State Survey Enforceable Continued Against Employment Reformation Employees Protectable / Legitimate is Sufficient Blue Pencil Terminated State Permitted Interests Standards Exemptions Consideration Red Pencil w/o Cause Non-"key employees.". ("Key employees" are those who have gained a high level of inside Reasonable as to duration, geographical knowledge, area, type of employment or line of influence, business, and does not impose a credibility, greater restraint than is reasonably notoriety, fame, necessary to protect the employer's reputation or legitimate business interests; public persona as Trade secrets; technologies; reasonable as to covenantor, a representative intellectual property; business covenantee, and public.

9 Rebuttable or spokesperson plans; business processes presumptions of reasonableness: 18 of the employer, and methods of operation; months; geographic area restricted to and as a result, goodwill; customers; areas employee provided services or have the ability Yes as to "key customer lists; customer had significant presence or influence; to harm or Yes (but if no employees" contacts and referral sources; limited to line of business in which threaten an additional (defined in vendors and vendor contacts; employee worked. Presumption that employer's consideration, statute). financial and marketing employee is "key employee" if in legitimate noncompete Idaho Code information; potentially highest paid 5% employees in business is limited to Idaho 44-2701-2704 others. company. interests.) 18 months) Reformation Yes Ancillary to a valid employment relationship; no greater than required Legitimate business interests to protect a legitimate business are based on the totality of interest; does not impose undue the facts and circumstances hardship on the employee; not Broadcasters; Yes (if of the case.

10 Trade secrets, injurious to the public; and reasonable government employment confidential information, and in time, space, and scope. [May require contractors; continued for near permenant business two years of employment before any physicians; low- sufficient Illinois Yes relationships are factors. noncompete can be enforced.] income workers. duration) Reformation Yes Russell Beck Beck Reed Riden LLP 5 of 18. 155 Federal Street, Suite 1302 4/27/19. Boston, MA 02110 2010-2019 Beck Reed Riden LLP. 617-500-8670 All Rights Reserved Not Intended As Legal Advice Employee Noncompetes A State by State Survey Enforceable Continued Against Employment Reformation Employees Protectable / Legitimate is Sufficient Blue Pencil Terminated State Permitted Interests Standards Exemptions Consideration Red Pencil w/o Cause Clear and specific (not general). restraint must be reasonable in light of the legitimate interests to be protected;. reasonableness is measured by totality of interrelationship of the interest, and the time, space, and scope of the Trade secrets; confidential restriction, judged by the needs for the information; goodwill; special restriction, the effect on the employee, Indiana Yes training or techniques.